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Planning Commission Minutes — October 28, 2010 <br />Page 2 <br />Arcand thought the city should reduce the fees for residential development also. <br />Rosenquist didn't agree with the EDA. He thought it was unfair to agricultural properties that <br />wanted to subdivide into just a few lots because they would be hit with the $2,400 fee per unit <br />and commercial wouldn't pay anything. <br />Shayla explained that other surrounding communities have a higher parkland dedication fee <br />Schumann opened the public hearing. <br />Parks Commission Chair, Jim Taylor, stated that when people look to move the top three items <br />were schools, parks, and streets. They look at both the quality of life and economics in the area. <br />Parks help our economy because the taxes are higher when you live closer to a park. He also <br />felt that the fees should be left on businesses because the parkland fees in Hugo were already <br />lower than other surrounding communities. He also pointed out to the Planning Commission that <br />parks were the numberl item small businesses look at when moving and number 3 reason for <br />larger businesses. <br />Schumann Closes the public Hearing. <br />Schumann stated that he agreed with the EDA in that removing the parkland fee would attract <br />new businesses. <br />McRoberts asked what percentage actually pay the fee rather than dedicate land? <br />Community Development Director, Bryan Bear, answered that the actual requirement is to <br />dedicate land, however the City can accept a fee instead of land. High density development fee <br />at $2,400 per unit would eventually exceed the land value price. <br />McRoberts pointed out that the commercial properties could have a reduced fee instead of <br />removing the fee all together. <br />Bryan answered that the council adopts a fee schedule each year and the commercial parkland <br />dedication fee could be lower or higher each year. <br />Rosenquist asked why reduce the fee for businesses and not residents. He felt they have an <br />advantage here over other communities because we have lower fees already. <br />Schumann stated that businesses pay very high fees in other areas of development such as the <br />sewer and water service connection fees (SAC and WAC Fees). He asked staff how much a <br />business might pay for these types of fees. <br />Bryan stated an example could be a restaurant business that recently located in the City paid over <br />$100,000 dollars for these connection fees. <br />